Danske Andelskassers (DAB) Q4 2024 earnings summary

Executive summary

• Record pre-tax profit of DKK 354.6 million, up 16.7% year-over-year, marking the best result since the 2011 IPO.

• Return on equity before tax reached 12.7%, slightly above last year’s 12.5%.

• Strong customer growth and business volume, with new advisory centers in Copenhagen North and Horsens contributing.

• Strategic shift towards affluent individuals, families, and SME owners, with a new 2030 strategy and headquarters moving to Aarhus.

• Board proposes a dividend of DKK 81.1 million for 2024.

Financial highlights

• Net interest and fee income rose 4.0% to DKK 789.7 million year-over-year.

• Operating expenses and other costs increased 14.1% to DKK 559.1 million, driven by strategic investments and one-off costs.

• Basis earnings fell 14.4% to DKK 230.7 million, impacted by DKK 29.3 million in one-off expenses related to the new strategy and headquarters relocation.

• Loan portfolio decreased 1.9% to DKK 7,778 million, while deposits rose 4.4% to DKK 10,154 million.

• Total business volume grew 5.4% to DKK 30.5 billion.

• Capital ratio at year-end was 29.9%, with a capital surplus of 14.1 percentage points above requirements.

• Proposed dividend per share is DKK 0.36.

Outlook and guidance

• 2025 earnings expected to be impacted by further one-off costs and investments tied to the new strategy and headquarters move.

• Guidance for 2025: basis earnings of DKK 100–160 million and pre-tax profit of DKK 100–180 million, reflecting significant uncertainty due to strategy execution and market conditions.

• Long-term targets: 50% growth in business volume by 2030 and return on equity before tax in the 10–12% range.